Exchange Traded Concepts Announces Reverse Share ?· Exchange Traded Concepts Announces Reverse Share…

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  • Exchange Traded Concepts Announces Reverse Share Split for REX VolMAXXTM Long VIX

    Weekly Futures Strategy ETF

    August 2, 2017 (OKLAHOMA CITY, OK.)Exchange Traded Concepts, LLC today announced that the

    Board of Trustees of Exchange Traded Concepts Trust has authorized a reverse share split for the REX

    VolMAXX Long VIX Weekly Futures Strategy ETF (VMAX). The firm will execute a 1-for-8 reverse split of

    the shares effective at the open of the market on August 17, 2017. The total market value of the shares

    outstanding will not be affected as a result of this split, except with respect to the redemption of

    fractional shares, as outlined below. A summary of the ETF undergoing a reverse share split is as


    Fund Name Ticker Inception Date CUSIP Proposed

    Reverse Split


    REX VolMAXX Long VIX Weekly Futures

    Strategy ETF

    VMAX 5/2/2016 301505848 1 for 8

    The reverse split will raise the price of the shares for the fund and decrease the number of shares

    outstanding, without affecting the total value of the shares outstanding. A hypothetical example of a 1-

    for-8 reverse split is provided as follows:

    Period Number of Shares Owned Hypothetical Market

    Price/Share ($US)

    Total Value ($US)

    Pre-Split 800 $2.00 $16,000

    Post-Split 100 $16.00 $16,000

    Redemption of Fractional Shares and Tax Consequences for Each Reverse Split

    As a result of the reverse splits, a shareholder of the ETF could potentially hold a fractional share.

    However, fractional shares cannot trade on Bats BZX Exchange, Inc. Thus, each ETF will redeem for cash

    a shareholders' fractional shares at the Fund's split-adjusted NAV. Such redemptions could cause a

    shareholder to realize a gain or loss. Otherwise, the reverse splits will not result in a taxable transaction

    for holders of ETF shares. Exchange Traded Concepts, LLC does not impose a transaction fee on

    shareholders for such redemptions.

    Brokerage Charges

  • Some brokerage charges may apply as a result of the reverse split. These charges are made directly by

    the broker and are not charges from Exchange Traded Concepts, LLC.

    The VolMAXX funds are the first ETFs regulated under the Investment Company Act of 1940 to offer

    exposure to VIX futures. The funds seek to invest in VIX futures contracts that are near to expiration,

    subject to overall liquidity and roll cost considerations, and intend to maintain a weighted average time

    to expiration of less than one month at all times.

    Exchange Traded Concepts, LLC has served as the Funds investment advisor since each Funds inception.

    ETC is a privately-held company which provides a variety of investment services, including asset

    management and financial advisory services, with collective assets under management of approximately

    $3.4 billion as of July 28, 2017 through exchange traded funds.

    Carefully consider the Funds investment objectives, risk factors, charges and expenses before

    investing. This and additional information can be found in the Funds prospectus, which may be

    obtained by calling 1-844-REX-1414. Read the prospectus carefully before investing.

    Investing involves risk, including the possible loss of principal.

    The fund should be utilized only by investors who (a) understand the risks associated with the use of

    derivatives, (b) are willing to assume a high degree of risk, and (c) intend to actively monitor and

    manage their investments in the fund.

    Exchange Traded Concepts, LLC serves as the investment advisor and Vident Investment Advisory serves

    as sub-advisor to the fund. The Funds are distributed by SEI Investments Distribution Co., which is not

    affiliated with Exchange Traded Concepts, LLC or any of its affiliates.

    These ETFs are actively managed and there is no guarantee investments selected and strategies

    employed will achieve the intended results. The Funds expect to invest primarily in VIX futures

    contracts. The use of derivatives, such as futures contracts, swap agreements and options, presents risks

    different from, and possibly greater than, the risks associated with investing directly in traditional

    securities. The derivatives may not always be liquid. The Funds will invest in exchange-traded notes and

    exchange-traded funds, and will be subject to the risks associated with such vehicles. The Funds are non-

    diversified. Short sales are transactions in which a Fund sells a security it does not own. Because a short

    position loses value as the securitys price increases and the market price of the shorted security could

    increase without limit, the loss on a short sale is theoretically unlimited. Short sales involve leverage

    because the Fund borrows securities and then sells them, effectively leveraging its assets.

    The VIX Index is not directly investable. The settlement price of a VIX Futures Contract is based on the

    calculation that determines the level of the VIX Index. As a result, the behavior of a VIX Futures Contract

  • may be different from traditional futures contracts whose settlement price is based on a specific

    tradable asset. When economic uncertainty increases and there is an increase in expected volatility, the

    value of VIX Futures Contracts will likely also increase. Similarly, when economic uncertainty recedes

    and there is an associated decrease in expected volatility, the value of VIX Futures Contracts will likely

    also decrease. Futures markets are highly volatile and the use of or exposure to futures contracts may

    increase volatility of the Funds NAV. Futures contracts are also subject to liquidity risk. Several factors

    may affect the price and/or liquidity of VIX Futures Contracts, including, but not limited to: prevailing

    market prices and forward volatility levels of the U.S. stock markets, equity securities included in the

    S&P 500 and prevailing market prices of options on the S&P 500, the VIX Index, options on the VIX,

    VIX Futures, or any other financial instruments related to the S&P 500 and the VIX or VIX Futures;

    interest rates; economic, financial, political, regulatory, geographical, biological or judicial events that

    affect the current volatility reading of the VIX or the market price or forward volatility of the U.S. stock

    markets; supply and demand as well as hedging activities in the listed and over-the-counter equity

    derivatives markets; disruptions in trading of the S&P 500 futures contracts on the S&P 500 or options

    on the S&P 500; and the level of contango or backwardation in the VIX Futures Contracts market.


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